In the matter of Shreenidhi Woodtech Private Limited

IN THE NATIONAL COMPANY LAW TRIBUNAL AHMEDABAD DIVISION BENCH COURT - 1 ITEM No.202 IA 38 of 2020 in CP(IB) 154 of 2017 Orders under Section 54(1) IBC, 2016 IN THE MATTER OF: Arvind Gaudana Lquidator of Sreenidhi Woodtech Pvt Ltd ........Applicant V/s Oriental Bank of Commerce ........Respondent Order delivered on ..10/08/2022 Coram:

Madan B. Gosavi, Hon’ble Member(J) Kaushalendra Kumar Singh, Hon’ble Member(T)

PRESENT: For the Applicant : For the Respondent :

ORDER

The case is fixed for pronouncement of the order. The order is pronounced in open Court vide separate sheet.

-SD- -SD- KAUSHALENDRA KUMAR SINGH MADAN B GOSAVI MEMBER (TECHNICAL) MEMBER (JUDICIAL)

I.A. No. 38 of 2020 IN C.P. (I.B.) No.154/9/NCLT/AHM/2017

BEFORE THE ADJUDICATING AUTHORITY (NATIONAL COMPANY LAW TRIBUNAL) AHMEDABAD BENCH Court No. I

I.A. No. 38 of 2020 IN C.P. (I.B.) No.154/9/NCLT/AHM/2017 I.A. No. 38 of 2020 (An Application under Section 54(1) of the Insolvency and Bankruptcy Code, 2016) Mr. Arvind Gaudana Liquidator of M/s. Shreenidhi Woodtech Pvt. Ltd. Having its office at: 307, Ashirwad Paras, Corporate Road, Nr. Prahaladnagar Garden Satellite, Ahmedabad. ………..Applicant Versus Oriental Bank of Commerce Now Punjab National Bank Having its office at: Ground Floor, Fortune Tower Vadodara, Stock Exchange Building, Sayajigunj, Vadodara ……Respondent/Financial Creditor

In the matter of: C.P. (I.B.) No.154 of 2017 (An Application under Section 9 of the Insolvency and Bankruptcy Code, 2016)

M/s M. S. Enterprise …..Operational Creditor Versus M/s. Shreenidhi Woodtech Private Limited ..…Corporate Debtor

I.A. No. 38 of 2020 IN C.P. (I.B.) No.154/9/NCLT/AHM/2017

Order delivered on. 10.08.2022

Coram: Madan B. Gosavi, Member (Judicial) Kaushalendra Kumar Singh Member (Technical) Appearance: For the Applicant : Mr. Rushabh Shah, PCS

[ORDER]

1. The instant application is filed by Mr. Arvind Gaudana, Liquidator of M/s. Shreenidhi Woodtech Private Limited (“Corporate Debtor”) under Section 54(1) of the Insolvency and Bankruptcy Code, 2016 (“IB Code”) read with Regulation 45 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (“Liquidation Regulations”) seeking order of dissolution of the Corporate Debtor. 2. The averments made by the Applicant are summarized as under : (i) The Corporate Debtor was admitted in Corporate Insolvency Resolution Process (“CIRP”) vide order dated 22.12.2017 by this Adjudicating Authority, and Mr. Arvind Gaudana was appointed as an Interim Resolution Proessional (“IRP”) vide order dated 08.01.2018. The IRP constituted the Committee of Creditors (“COC”) under Section 21 of the IB Code in terms of Section 15 of IB Code read with Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulations, 2016 (“CIRP Regulations”) which comprised of sole CoC member,

I.A. No. 38 of 2020 IN C.P. (I.B.) No.154/9/NCLT/AHM/2017 namely, Oriental Bank of Commerce now Punjab National Bank. (ii) The IRP convened the 1st meeting of the CoC on 07.02.2018, the Suspended Management was not present in the meeting. The 2nd meeting of the CoC was held on 03.04.2018, wherein the IRP Mr. Arvind Gaudana was appointed as a Resolution Professional of the Corporate Debtor, the Applicant herein. It was further resolved that no stocks were found at the registered address of Corporate Debtor, therefore, CoC did not appoint the registered valuers.

(iii) The Promoters of the Corporate Debtor submitted the hand written resolution plan, which was discussed in the 3rd meeting of CoC held on 11.04.2018 vide that plan, the promoters had agreed to clear all debts on or before 31.08.2018. The 4th meeting of CoC was held on 22.04.2018 wherein the representative of the sole member of the CoC informed that the promoters of Corporate Debtor have deposited Rs.5,50,000/- but failed to deposit subsequent installment of Rs.4,50,000/- as on 30.04.2018 as per Proposed Resolution Plan. Therefore, Resolution Plan submitted by promoters of the Corporate Debtor was rejected by the CoC. No financial data was provided by the Suspended Management to the RP, hence, the CoC decided to appoint Forensic Auditor from Bank’s panel and it was also decided to appoint a Statutory Auditor for F.Y. 2016-17 & 2017-18 as no co-operation was received from present Auditor.

I.A. No. 38 of 2020 IN C.P. (I.B.) No.154/9/NCLT/AHM/2017 (iv) The CoC further resolved to extend the period of the CIRP by 90 days beyond 180 days as the period of the CIRP was to be ended on 20.06.2018. This Adjudicating Authority allowed the extension of 90 days vide order dated 14.06.2018 in IA 205 of 2018. In the 5th CoC meeting dated 05.07.2018, the CoC approved the appointment of forensic Auditor, M/s. Patel Jain & Associates, Chartered Accountants. But the Directors of the Corporate Debtor refused to sign Audit Report prepared by Statutory Auditors for the F.Y. 2016-17 & 2017- 18.

(v) In the 6th CoC meeting dated 11.08.2018, it was resolved to liquidate the Corporate Debtor and also resolved to appoint Resolution Professional as Liquidator the Applicant herein. This Adjudicating Authority vide order dated 30.11.2018 passed an order of liquidation and appointed the applicant as a Liquidator in IA 335 of 2018.

(vi) The Applicant published Form-B on 11.12.2018 under Regulation 12 of the Liquidation Regulations in English Daily “Western Times” and in Gujarati Daily “Gujarat Samachar – Kheda” newspapers, inviting claims for all stakeholders and also announced that the Corporate Debtor is under liquidation. The Applicant prepared a list of stakeholders comprised one Secured Creditor, namely, Oriental Bank of Commerce now Punjab National Bank and the same was filed before this Adjudicating Authority on 29.01.2018. Thereafter, the Applicant opened the Liquidation Account under Regulation 44 of the Liquidation Regulations bearing no. 0999101200193 in I.A. No. 38 of 2020 IN C.P. (I.B.) No.154/9/NCLT/AHM/2017 the name of the Corporate Debtor with Oriental Bank of Commerce now Punjab National Bank – Satellite Branch, Ahmedabad and transferred an amount of Rs.5,50,000/- on 28.01.2019 and Rs. 25,00,000/- in April, 2019 in the said Liquidation Account. The Applicant informed the order of liquidation dated 30.11.2018 of this Adjudicating Authority to the Registrar of Companies, Gujarat and filed E-Form MGT-14 before Registrar of Companies through MCA portal.

(vii) In compliance with regulation 13 of Liquidation Regulations the Applicant prepared a Preliminary Report within 75 days from the liquidation commencement date and filed before the Adjudicating Authority on 11.02.2019 wherein it is clearly mentioned that an amount of Rs.30,50,000/- was recovered after commencement of CIRP and forensic Audit has been conducted. Hence, no further inquiry into any matter relating to the promotion, formation or failure of the Corporate Debtor was carried out. It is also mentioned in the Preliminary Report that the estimated liquidation cost is Rs.4,80,000/-including all expenditure and no assets could be traced by the Resolution Professional during CIRP, therefore, valuation of assets is not comtemplated.

(viii) The Liquidator appointed Mr. Kunal V Shah & Associates, Chartered Accountants for F.Y. 2018-2019 and Ms. Purvi Jignesh Shah & Co., Chartered Accountants for the F.Y. 2019-2020 for conducting the audit of the Corporate Debtor. Thereafter, the Applicant made a public announcement under regulation 31 of Liquidation Regulations in English Daily

I.A. No. 38 of 2020 IN C.P. (I.B.) No.154/9/NCLT/AHM/2017 “Western Times” and in Gujarati Daily “Gujarat Samachar” informing that the list of stakeholders has been filed before this Adjudicating Authority.

(ix) The meeting of stakeholders was held on 30.07.2019 wherein Applicant briefed the report of liquidation to the representative of the sole member of SCC i.e. Oriental Bank of Commerce now Punjab National Bank wherein the SCC passed a resolution for the liquidation cost and to take necessary action for dissolution of the Corporate Debtor. Thereafter, the Applicant filed this application along with the final report dated 28.11.2019 explaining how the liquidation process is conducted by the liquidator and how the assets of the Corporate Debtor has been liquidated. It is also mentioned in the final report that the Suspended Management had filed Annual Report/Annual Accounts of the F.Y. 2015-16 with the Registrar of Companies, Gujarat and Income Tax Return for F.Y. 2015-2016.

3. Heard the learned counsel for the Applicant and perused the material on record. It is noted that the Corporate Debtor was admitted in the CIRP on 22.12.2017 and the order of liquidation of the Corporate Debtor was passed by this Adjudicating Authority on 30.11.2018. Thereafter, the Applicant published Form-B for submission of Claim by the stakeholders. In response to the aforesaid publication only one Financial Creditor submitted its claim of Rs. 84,26,533/-. The Applicant constitute the SCC which comprised only one member i.e. Oriental Bank of Commerce now Punjab National Bank. As per the preliminary report there were no assets with the Corporte Debtor which were to be I.A. No. 38 of 2020 IN C.P. (I.B.) No.154/9/NCLT/AHM/2017 realised except the recovered amount of Rs.30,50,000/-. The realised amount has been duly disbursed to the stakeholders. The manner in which amounts were disbursed are as under :- Liquidator’s account from 30.11.2018 to 28.11.2019

Amount (in Rs.) Receipt Value Realised Payments Total Amount Distributed Bank Balance 3,050,000 Insolvency with Oriental Resolution Bank of Process Cost Commerce RP fees 377,600 including GST Out of Pocket 21,573 exp by RP IRP fees 40,000 Including GST (Paid by OC) Out of Pocket 1,337 exp by IRP (Paid by OC) Total Insolvency 440,510 Resolution Process Cost Less: Incurred 41,337 and paid by Operational Creditor (M S Enterprise) Insolvency 399,173 Resolution Process Cost

Litigation cost before NCLT Statutory 43,316 Auditor NCLT 3,118 Application fees Forensic 88,500 Auditor Fees

I.A. No. 38 of 2020 IN C.P. (I.B.) No.154/9/NCLT/AHM/2017

Total CIRP Cost 534,107 (A) Liquidation Cost Advertisement 40,491 Expense Audit Fees 25,000 Printing, 7,560 Stationery, Conveyance and other Misc Expe Exp such as Notary, Stamping etc, Advocate fees 25,000 for Dissolution Application Income Tax 5,000 filling of Liquidation Account Professional 5,000 Fees for Filling INC – 28 with ROC ROC, MCA 1,800 filing Fees – INC 28 NCLT Filing 1,000 Fees Bank Charges 35 (Verify from Bank Statement) Total 110,886 110,886 Liquidation Cost (B)

Liquidation 1,62,411 Remuneration

Secured Creditors Oriental Bank 22,42,596 of Commerce

Total Receipt 3,050,000 Total Payment 3,050,000

I.A. No. 38 of 2020 IN C.P. (I.B.) No.154/9/NCLT/AHM/2017

4. The final report and compliance certificate in Form-H has been submitted along with closing of Liquidation Account and Bank Statement wherein it is clearly showing that all the amount has been duly disbursed to the stakeholders and nothing remains to be realised.

5. In view of the above, we are of the considered view that the Applicant has complied with all the relevant provisions of the IB Code and applicable regulations thereunder Section 54(2) mandates that the Adjudicating Authority shall pass the order of dissolution after completion of the liquidation process. For ready reference we reproduce Section 54(2) of the IB Code. Section - “54(2) The adjudicating Authority shall on application filed by the liquidator under sub-section (1) order that the corporate debtor shall be dissolved from the date of that order and the corporate debtor shall be dissolved accordingly.”

6. We found that the assets of the Corporate Debtor have been fully and completely liquidated. Hence, by invoking the above provisions, we allow this application and pass the following order:

ORDER (i) The Corporate Debtor, M/s. Shreenidhi Woodtech Private Limited having CIN No. (CIN No. U20296GJ2013PTC076335) stands dissolved from the date of this order as per the Section 54(2) of the Insolvency and Bankruptcy Code, 2016.

I.A. No. 38 of 2020 IN C.P. (I.B.) No.154/9/NCLT/AHM/2017 (ii) Copy of this order be sent/communicated to the Registrar of Companies, Gujarat, Ahmedabad within seven days from the date of this order for information and necessary action.

(iii) With the above directions IA 38 of 2020 in CP (IB) 154/9/NCLT/AHM/2017 is allowed and stands disposed of.

-SD- -SD- (Kaushalendra Kumar Singh) (Madan B. Gosavi) Member (Technical) Member (Judicial) Swetambary/Ramashish